The David Jones is iconic department store in Australian retail industry, but the net profit of David Jones has been decreasing because of the rapid retail environmental changes, unhealthy cultures, and global online attack. The problems of declining net profit in David Jones are creating make it essential to apply the most suitable change management for company. 1.2
The aim of this report is not only applying the change management theory, model, and style for David Jones and David Jones’ CEO, Paul Zahra, but also supporting the arguments through case studies in order to find practical solution. 1.3
This report presents the view that a positive model, modular transformation and incremental change are the most suitable change management theory that can be implemented for David Jones. Also, a coercive style of management is a suitable style of management for David Jones’ CEO, Paul Zahra. The findings and analysis of performance for each theory, model, and style are justified by a critical comparison of the change management theories, models, styles and practical problem solution cases. Moreover, the improvements for David Jones’ restructure are discussed.
2.0 MODEL OF PLANNED CHANGE FOR DAVID JONES 2.1 David Jones issues
David Jones is the oldest department store in Australia and was established in 1838. Until 2010, David Jones worked successfully in the Australian market, especially from 2007 to 2010. During that time, the net profit of David Jones increased from $109.5 million to $156.5 million, but the significant growth in the net profit dropped slowly from $156.5 million to $101.1 million by 2012. The slow decrease in the net profit of David Jones is caused by unhealthy organisational culture, global online retail attacks and retail environmental changes. In order to reconfirm David Jones’s importance in the Australian retail and consumer market, the best planned change model has to be chosen for David Jones. 2.2 Comparison of planned change models for David Jones Cummings and Worley (2009) summarise the differences of three major models of planned change. The first one is Lewin’s change and action research model, which are more focused on fixing problems than concentrating on what the organisation does well and gaining those strengths. Also, Lewin’s change model, a three-stage model, claims that adaption of these forces maintain the status quo, which leads to efficient strategy for change (Waddell, Cummings & Worley 2007). The three-stage of Lewin’s change model is shown in figure 1(A). Moreover, the action research model is a cyclical process, which is determined by eight steps that fix problems using frequent research (Cummings & Worley 2009). Eight steps of action research are shown in figure 1(B). On the other side, a positive model focuses on positive dynamics in an organisation that improves the extraordinary results (Waddell, Cummings & Worley 2014, p. 39). This model is described by in five steps, which is shown in figure 1(C).
Figure 1: The comparison of planned change models (Cummings & Worley 2009, p.25)
2.3 Positive model for David Jones
According to David Jones case study, the positive model of planned change is the best suitable one for David Jones because: •
it is proved that in order to survive with today’s uncertainty and huge competitive business environment, organisations need to focus on more business environmental changes than fixing the organisational problems (Waddell, Cummings & Worley 2014, p. 39) •
Cristian-Liviu (2013, p. 1690) notes that the resistance for change causes the failure of strategic implementation because employees try to maintain their culture. Also, Ruxandra and Camelia (2013, p. 127) noted that resistance to change may create lots of problems during the change process such as activity drawl,...
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